Affiliate marketing is an easy industry to navigate if you know what is what, and the meaning behind some of the jargon and industry terms that we throw about. However, it can be useful to have some answers to the most Frequently Asked Questions for newcomers.
After all, this is a busy industry and there is a lot happening in all directions. If you are new to the world of affiliate marketing, or you are considering investigating this as a possible source of income, here are some of the most Frequently Asked Questions we see time and time again!
What is affiliate marketing?
Affiliate marketing is a performance-based marketing model. A brand will offer its product to promoters, called affiliates, who will showcase it to their audience. If someone from the audience chooses to then buy the product and that sale can be attributed to the affiliate, the affiliate is paid a commission by the brand.
Who can be an affiliate?
Affiliates can take many different forms. Some might be individual people; others might be companies or brands themselves. Types of affiliate partners can include:
- Content creators like bloggers or social media influences
- Product review sites
- Coupon sites
- And many more!
What is an affiliate program?
An affiliate program is the package an affiliate signs up to when they agree to promote a product. It will detail everything from what the product is to how they can best promote the product through campaigns, and what their commission rate will be. Everything will be headed up by a dedicated affiliate manager who will work with the affiliate to ensure that they are getting the best results.
What is an affiliate network?
An affiliate network is a platform that connects advertisers and publishers together. They are a great way to pull together leads from multiple brands. An affiliate might work with several programs or brands, and the right affiliate network will help connect them together.
What is commission?
Commission is how an affiliate is paid. When signing up to a program, an affiliate will agree on a certain commission rate. They are paid a percentage of the total sale that they have given the brand. Their contribution to the sale is usually tracked through either a link or a promotional code that the customer can use.
What payment plans are available for affiliates?
Most affiliates are paid commission based on a certain payment plan. These include:
- Pay per sale – where the affiliate is paid commission for the customer’s purchase
- Pay per lead – where the affiliate is paid if the customer completes a certain action
- Pay per click – where the affiliate is paid if the customer clicks a link to direct them from the affiliate’s site to the brands
- Hybrid – uses a mixture of the above payment plans
Do you have to pay to join an affiliate program?
No, you should not have to pay to sign up to an affiliate program. There might be some costs involved with becoming an affiliate if you have to set up a fresh website – such as paying for a domain name and so on – but the actual act of becoming an affiliate should not cost anything.
Which industries have affiliate programs?
If you can think of it, there will probably be an affiliate program for it! Many of the biggest industries make use of affiliate marketing to help promote their products. Some of the most common industries that you can find using affiliate marketing to promote their products and services include:
- Retail and eCommerce
- Health and beauty
- Cryptocurrencies and forex
- And a lot more!
Do affiliates have to disclose their links?
Yes, both the Federal Trade Commission (FTC) and the Advertising Standards Authority (ASA) have clear guidance for those involved in affiliate marketing. Any affiliate material or links must be obviously marked as such. Though an influencer might have set up their affiliate code out of a genuine love for the brand, they must still clearly disclose that they could potentially make money from any sales.
Can I get help with my affiliate marketing management?
Though you might have an affiliate manager that you work with from your network, you might still want a little support from elsewhere to help you make the most of your marketing and campaigns. Here at AffiliateINSIDER, we support affiliates of all sizes and experiences. Check out what our affiliate program management can offer you – we can help you scale and grow your affiliate programs successfully.
These are some of the most Frequently Asked Questions we see, but there is still so much to learn about this industry. If you want to know more about the world of affiliate marketing, don’t be afraid to get in touch with our affiliate marketing experts today!